Clean Coal Technologies, Inc. (CCTI), a clean energy technology company with executive offices in Manhattan, New York, today announced the signing of an MOU for its first Technology License and Royalty Agreement.
The company has signed a Memorandum of Understanding (MOU) with the Huamin Senior Fund Holding Group Co., Ltd, for its first technology license and royalty agreement to build an initial clean coal facility with a capacity of 1.5 million tonnes in China. Under the proposed contract, Huamin will provide funding for all infrastructure development, coal assets, administration, and technical resources. Huamin will contract directly with Benham for the engineering design, procurement and construction of the new facility.
Huamin is a government institution, which falls under the China National Working Committee on Ageing (CNWCA). Huamin is responsible for managing the retirement funds of all Chinese government workers. Under its charter, Huamin is authorised to invest its funds in a limited number of government-approved initiatives, one of which is coal enrichment.
CCTI will receive one-time license fees of US$ 1 million per million tonnes of production, and an ongoing royalty fee for each tonne of clean coal produced. Initial revenues will be US$ 500,000 at the time of feasibility study submission to the local technical institutes; a further US$ 500,000 six months thereafter, and the final instalment of US$ 500,000 once initial production commences. As this is a license/royalty agreement as compared to a joint venture agreement, Huamin anticipates an accelerated approval process which should not exceed six months, particularly as the majority of the government requirements have previously been developed and accepted for CCTI’s Inner Mongolia project.
CCTI’s coal beneficiation technology removes pollutants prior to combustion of the coal and significantly reduces the environmental impact of burning coal for power generation. China is currently heavily reliant on coal for electricity generation and this is unlikely to change overnight, with the demand for electricity rapidly growing. This technology will allow China to lower its emissions and still keep the lights on.
Robin Eves, CCTI Chief Executive Officer and member of the Board of Directors of the Company, says, "Having Huamin as a licensee immediately moves the prominence of our China activities from that of a local regional initiative to one supported and sponsored by the Chinese Central government, and therefore assures the project’s access to funding, coupled to the appropriate project management and oversight resources necessary for its success. It also reflects the strategic importance being placed on coal benefaction in China, and CCTI’s prominent position in the process at a time when coal reserves are increasingly being awarded only on the basis of the availability of complimentary technologies to improve their value.”
Read the article online at: https://www.worldcoal.com/coal/15122010/clean_coal_technologies_signs_mou_for_technology_license_agreement/